Student loans funded by the government typically offer lower interest rates than similar bank loans but must be paid back earlier.

Question

Quizplus · Accepted Answer

Student loans funded by the government typically offer more flexible repayment options and longer repayment periods than bank loans, which can benefit borrowers who need more time to pay back their loans. Additionally, interest rates on government-funded student loans aren't always lower than those offered by banks. Federal student loan interest rates are fixed, while bank loan interest rates are variable and may be higher or lower depending on the borrower's creditworthiness. However, government-funded student loans do not require repayment until after a borrower has graduated, while bank loans may require repayment while the borrower is still in school.

Student Loans Funded by the Government Typically Offer Lower Interest